Which of the Following Is Not a Condition Necessary for Ratification

question 29

Multiple Choice

Which of the following is not a condition necessary for ratification?

• A) The agent must have purported to act on behalf of or as an agent for the identified principal.
• B) The third party benefiting from the ratification must give consideration for the ratification.
• C) The principal must have been capable of authorizing the act both at the time of the act and at the time it was ratified.
• D) The principal must have full knowledge of all material facts.

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Definitions:

Absorption Costing

A bookkeeping system that integrates all costs, both direct and indirect, associated with the production of a product into its final cost.

Direct Labor

The wages and salaries paid to employees who are directly involved in the production of goods or the provision of services.

Manufacturing Overhead

Costs in the production process that are not directly tied to a specific product, such as factory utilities or salaries of supervisors.

Product Costs

Expenses directly tied to the production of goods or services, including direct materials, direct labor, and manufacturing overhead.